High Correlation between Net Promoter Score and Evolution of Consumer’s Willingness to Pay (Empirical Evidence from European Mobile Markets)

31 Pages Posted: 18 Jun 2011 Last revised: 1 Aug 2018

Date Written: June 16, 2011

Abstract

This paper shows that the correlation between the Net Promoter Score and consumers Willingness To Pay in five European mobile markets is very strong. The Net Promoter Score is provided by a survey and the Willingness To Pay is calculated from the “Spokes Model” which is an economic model based on horizontal differentiation among firms. The model input data (firms’ revenues, number of subscribers and profits) are provided by the Merill Lynch, Bank of America. The well known correlation between Net Promoter Score and Revenues is weaker and arises from the previous one. Same goes for the correlation between Net Promoter Score and Profits.

Keywords: Net Promoter Score, recommend intention, customer satisfaction, consumer's Willingness to Pay

JEL Classification: D11, D43, L13, L96, M31

Suggested Citation

Jeanjean, François, High Correlation between Net Promoter Score and Evolution of Consumer’s Willingness to Pay (Empirical Evidence from European Mobile Markets) (June 16, 2011). Available at SSRN: https://ssrn.com/abstract=1865815 or http://dx.doi.org/10.2139/ssrn.1865815

François Jeanjean (Contact Author)

Orange ( email )

6, place d'Alleray
Paris, 75015
France

Register to save articles to
your library

Register

Paper statistics

Downloads
277
rank
105,841
Abstract Views
1,118
PlumX Metrics